NMDC Ltd plans to invest as much as 10 billion rupees ($224 million) to form ventures in India and overseas as part of a plan to enter coal excavation and expand its ore business. The company is now seeking partners in India, Australia, and Brazil and is setting up a panel of bankers to help its search. NMDC is also keen to enter into coal mining with Coal India Ltd as a partner. NMDC, the iron ore mining major, has sought a coal block in Birbhum district of West Bengal, where coal reserves are estimated to be above 19 billion tonne.
NMDC proposes to set up joint venture with CIL but for that the coal ministry should bypass the auction route and allot the Deocha Pachami coal block in Birbhum, for which NMDC has applied. CIL Chairman Partha Bhattacharya admitted that such a proposal was mooted. But this would fructify if the ministry gave an in-principle approval "of allotting the block at government dispensation." Even the West Bengal government had shown interest in such a JV.
In early 2009, NMDC and West Bengal Mineral Development & Trading Corporation had signed an agreement to undertake mining of Deocha Pachami coal block, which was then earmarked to come under the dispensation of the West Bengal government. But with the Centre proposing to auction coal blocks replacing allotment on the basis of screening, West Bengal feared that it would not have any blocks under its dispensation.
The coal block was rocky with thick seams and it required rock mining. NMDC had the experience of drilling in such terrain and combined with CIL’s experience it would be an efficient exploitation of coal from such an area.
NMDC proposes to set up joint venture with CIL but for that the coal ministry should bypass the auction route and allot the Deocha Pachami coal block in Birbhum, for which NMDC has applied. CIL Chairman Partha Bhattacharya admitted that such a proposal was mooted. But this would fructify if the ministry gave an in-principle approval "of allotting the block at government dispensation." Even the West Bengal government had shown interest in such a JV.
In early 2009, NMDC and West Bengal Mineral Development & Trading Corporation had signed an agreement to undertake mining of Deocha Pachami coal block, which was then earmarked to come under the dispensation of the West Bengal government. But with the Centre proposing to auction coal blocks replacing allotment on the basis of screening, West Bengal feared that it would not have any blocks under its dispensation.
The coal block was rocky with thick seams and it required rock mining. NMDC had the experience of drilling in such terrain and combined with CIL’s experience it would be an efficient exploitation of coal from such an area.
NMDC gets slots on FTSE indices
The shares of Government run mining company NMDC has been added to London’s FTSE All-World Index and FTSE All-Emerging Index. “Following the secondary offering for shares of NMDC by the President of India, the investability weighting will be greater than 5 per cent with all other grounds being eligible for fast entry. NMDC will be added to the Large Cap Index with shares in issue total of 396.47 crore and an investability weighting of 10 per cent,” said a release by the FTSE. This was effective from April 13.Next Story
